HL take over

POSTED BY G.C.Jayakumar ON November 2, 2012 4:36 pm COMMENTS (4)

Sir I Have taken a home loan from karnataka bank based on first year fixed and following 14 year on floating charge basis.Now I Am planning to tansfer my loan to another bank namely SBI so now karnataka bank is asking me to pay a sum of 1% on the loan amount as take over charges.Now i want to know whether there is any kind of rules such as to pay 1% penalty as take over charges to karnataka bank if there is any rules kindly give me information specifically as soon as possible.(if you send me email it is better) 

4 replies on this article “HL take over”

  1. Dear G C Jayakumar, as per RBI’s gudelines, no Bank can ask for penalties on loan switch over or closure.

    Thanks

    Ashal

  2. G.C.Jayakumar says:

    But most of the banks like SBI one of the leading sponsors of home loan have themself abolished takeover charges as per the guidelines of NHB.

  3. G.C.Jayakumar says:

    But circulars of NHB says that they should not levy any kind of such charges on takeover.Please refer DBOD.No.Dir.BC.107/13.03.00/ and NHB(ND)/DRS/Pol-No.51/2012-13 Dated Aug 7,2012 circulars and report your opinions.

  4. Ashwini Rao says:

    Hi,
    Generally, banks levy some penalty charges (say 1%-2%) when a loan is re-financed from other banks. Whether you need to pay 1% penalty would be written in Terms & conditions while you have applied for the loan. Please re-read the T&C again.

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